Knowledge Management Process and Audit Firm's Performance: An Empirical Evidence

This empirical research examines the relationship between knowledge management process and audit firm's performance. The auditor's knowledge in the audit firm is essentially considered as the company's intellectual capital. Thus, it is essential to see the impact of KM process which includes knowledge creation and acquisition, knowledge transfer and sharing, knowledge storage and retrieval, knowledge application and knowledge protection as the main contributor to audit firm performances. This study investigated the impact of KM process in audit firms in Malaysia through the survey questionnaires which were distributed to the audit firms located in the major cities. The statistical results revealed that only two out of five types of KM process have positive and significant relationships to the audit firm's performance. The process for (1) knowledge creation and acquisition and (2) knowledge storage and retrieval have emerged as the highly significant and moderately significant factor respectively for the KM performance of the audit firm.